Quartet of Swedish government leaders at press conference on Monday. Photo: Bertil Enevåg Ericson:Scanpix

Government plans SEK 15 billion tax cut

Leaders of Sweden's coalition government presented a united front Monday, as they announced a plan to cut taxes on earned income by 15 billion kronor. The government predicts that these measures will result in the creation of 13,000 new jobs. 

"We propose a strengthened tax reduction of  12 billion kronor. For the average wage-earner that will mean they will be able to keep  200 to 300 kronor more after taxes each month," said Prime Minister Fredrik Reinfeldt, the leader of the Conservative Party. This will be the fifth time they have cut income taxes since winning power in 2006.

The government also aims to raise the breaking point at which high-income citizens have to pay an additional state income tax.

"When we reached a political consensus on taxes 20 years ago the idea was that only about 15 percent of the population would pay the state income tax", Liberal Party leader Jan Björklund said at the press conference.

"Now, we are up to nearly every third person, and that was never our intention. Therefore, it is important to raise the cut-off point and reduce the size of this group. The cost of this measure is about  3 billion kronor, We want it to pay off when people take responsiblity in the workplace and develop themselves," he added.

The new tax plans will form part of the Autumn budget, to be presented to parliament later this week. The opposition Social Democrats, Green and Left parties say they will do all they can to stop the minority government's tax cuts in parliament.

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